Break-Even Point Calculator

Each sale contributes (price − variable cost) towards your fixed costs. Break-even is where those contributions have covered them all — before it, every month loses money; after it, every sale is profit.

Frequently asked questions

What is the break-even formula?

Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The bracket is the contribution margin: what each sale actually contributes after its own direct costs.

What counts as a fixed cost?

Costs that arrive whether or not you sell: rent, salaries, software subscriptions, insurance, loan EMIs. Variable costs scale with each unit — materials, packaging, payment-gateway fees, per-order shipping.

What if my variable cost is higher than my price?

Then every sale loses money and no volume can break even — the calculator says so rather than showing a meaningless number. The fix is pricing or cost structure, not volume.

Why does the calculator round units up?

You cannot sell a third of a unit. 333.3 computed units means the 334th sale is the first profitable one, so the tool always rounds up.

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